Us Gdp

The current state of the economy in the United States has been slow in recent months. While the economy is not currently in a recession, we may eventually fall victim to the first recession we've had in nearly ten years. The economy in general is showing growth, just not much. It will be difficult to predict what exactly will happen to the US economy in the future. Many economists do not agree on what will become of the economy. Some feel that we will begin a recession over the next year, and some feel that there is significant policy implementation that will allow us to dodge a recession and regain our economic strength. There are many factors that make up the US economy. The means in which I will discuss the overall growth and current status of the economy is by analyzing the Gross Domestic Product, and discuss the factors that cause it to rise and fall. The GDP is the total aggregate income of the United States. It is comprised of consumption, investment, government spending, and net exports. The GDP in the fourth quarter of 2000 grew at a 1.1% annual rate, the lowest since a 0.8% increase in the second quarter of 1995. The below par performance in GDP is due to those factors that comprise the GDP. The most important of which is consumption. Consumption in the United States has been less than expected mainly due to low consumer confidence. Consumer confidence has hit a 10 year low with an index of 106.8 as reported by Alan Greenspan. In the past 2 months the index number has plummeted nearly 22 points, the biggest decrease since the 1990-1991 recession. The reason for this recent drop in consumer confidence is due to several key factors. One factor is the poor performance of the stock market. The Dow Jones is down from its peak that was hit last year, but has now rebounded slightly. The Nasdaq took a dive with the decrease in the prices of tech stocks. The Nasdaq has fallen nearly 56% from its peak in March of 2000. The Wilshire 5000, which is a broader market, is also down by about 22%. Also a factor in dropping consumer confidence is the fear of more layoffs by major employers. The media has paid a lot of attention to large layoffs of companies, yet the labor markets still remain fairly tight. The natural rate of unemployment in the US is approximately 5%, which is higher than the actual rate of unemployment, which is estimated to be 4.2%. Another reason for the depletion of consumer confidence is the rise in inflation. The inflation rate was 3.5 percent last year as calculated by the consumer price index. Raising prices mean that consumers are less likely to purchase goods and services, and it also causes concern amongst them. A main reason for the increase in the inflation rate is the increase in energy costs. The increase in costs of energy is due primarily to a decrease in the supply of energy and an increase in the demand. Also playing a role in the lack of consumption is the purchasing power of net assets, or net wealth. In recent years when the stock market had been performing well, consumers were experiencing large increases in net wealth. Now that the market has been falling, net wealth is down and people have less purchasing power. Investment is another part of the economy that contributes to the GDP. Categories of investment include physical capital, residential construction, and inventories, all of which are owned by firms. Manufacturing activity has decreased so far this year in most parts of the US. Falling output among makers of high tech equipment and motor vehicles and parts was reported in the "Beige Book" in Atlanta, Chicago, St. Louis, and Dallas. Also noted was declining production of electronics and telecommunications, as well as production of industrial equipment and building materials. However there were improvements in production of pharmaceuticals and biotechnology. Most of the firms who reported declines in production also had increases in inventories. They...

...Gross domestic product (GDP) is the total market value of all final goods and services produced in an economy in a year or a given time period within a country’s borders (domestic output). This includes all production, both material and intellectual, everything produced by government and private business as well as consumer goods and capital construction. Gross national product (GNP) is the total income earned by a country’s factors of production in a year or a given time period, regardless of where assets are located (nations' output). Net national product (NNP) is the total market value of all final goods and services produced by residents in a country during a given time period.
The difference between GDP and GNP is the net foreign income (NFI), which is the difference between factor payments received from the foreign sector by domestic citizens and factor payments made to foreign citizens for domestic production. The "gross" in GDP and GNP indicates that there is no allowance for depreciation (capital consumption), value lost that occurs to inventory while it sits before being sold or consumed or the amount of capital resources used up in the production process. That is the difference between GDP and NNP. Depreciation (DP) is a reduction in the value of an asset with the passage of time, due to wear and tear. It can include consumption of goods in the production of other goods or services. Examples are the wear...

...Quarterly Gross Domestic Product (GDP) Analysis
Of The USA
Year: 2008 to 2010
Submitted To: Professor Chandrasekar
Submitted By: Anuj Majmudar (0905860)
Subject:
Macro-Economics
GDP of 2008 Quarter 1
Real gross domestic product -- the output of goods and services produced by labor and property located in
the United States -- increased at an annual rate of 1.0 percent in the first quarter of 2008 (that is, from the
fourth quarter to the first quarter), according to final estimates released by the Bureau of Economic
Analysis. In the fourth quarter, real GDP increased 0.6 percent.
The increase in real GDP in the first quarter primarily reflected positive contributions from personal
consumption expenditures (PCE) for services, exports of goods and services, and federal government
spending that were partly offset by negative contributions from residential fixed investment and PCE for
durable goods.
The small acceleration in real GDP primarily reflected an upturn in inventory investment that was partly
offset by a deceleration in PCE.
Real personal consumption expenditures increased 1.1 percent in the first quarter, compared with an
increase of 2.3 percent in the fourth.
Real residential fixed investment decreased 24.6 percent, compared with a decrease of 25.2 percent.
Real exports of goods and services increased 5.4 percent in the first quarter, compared with an increase of...

...Chain-Weighted GDP Worked Example (corrected version of pg. 35 in text) One problem with traditional “real GDP” calculations is that, since it values all goods at base year prices, it looks like prices never change. As time goes on, goods whose prices go down (and quantities usually go up) are still weighted by the old prices, and consequently get too much weight in later years’ GDP calculations. The goods don’t require a large expenditure share, but if they are valued at base year prices, it would look like a speciously high share of GDP. Let’s do the example:
YEAR 1 2 3 4 EXPENDITURE Computers Trucks 100 105 103 99 106 98 104 100 PRICE Computers $1.00 $.80 $.60 $.40
Trucks
$1.00 $1.05 $1.10 $1.15
QUANTITY (real) Computers Trucks 100.0 131.3 171.7 247.5 106.0 93.3 94.5 87.0
Notice that since Expenditure = Price*Quantity, real quantities are just Expenditure/Price. Often you start with quantities and prices and then derive expenditures; but you can’t do that with computers like you can with oranges, because although an orange in 1981 is the same as an orange in 2005, a computer is not – it’s harder to count up “quantity” in two different years. So, to get an idea of “quantity”, the best thing is to look at total expenditure and divide it by the price level. It’s simple to calculate real investment (a component of real GDP) in year 1, the base year:
Yr. 1 Real Investment = (100 computers)*($1)...

...﻿Heric Nelson
Professor Joseph Daly
Airline Management
1 October 2013
US Airways
The major airlines we know of today as US Airways was founded in the mid 1930s, except it was known as All American Aviation. All American Aviation started service as an airmail carrier to small western communities in the Ohio Valley and Pennsylvania. In 1949 All American Aviation underwent a name change to All American Airways; along with the company’s new name the airline changed operations in terms of the services it offered to the public. This time the company opted to focus on customer service, rapid growth in route systems, and in 1953 All American Aviation changed its name again to Allegheny Airlines.
In 1965 Allegheny Airlines purchased the turbine-powered Convair 580. A year later the airlines purchased a DC9-10, but then replaced it in 1967 with a DC9-30. The DC9-30 would hereafter form the fleet for Allegheny Airlines. After acquiring the DC9-30 fleet the airlines began providing passenger carriage from Hagerstown, MD and Baltimore/Washington International Airport. Along with the pressure of having to compete with other airlines and the importance of pleasing the passengers, Allegheny Airlines wanted to re-invent their fleet with more dynamic and dependable turbo-props.
The airlines first merger took place in 1968 with Lake Central Airlines. Along with this merger the airlines was able to effectively grow their route network; from Pittsburgh,...

...revenue growth for the past 10 years has been steady at 7.6%, outpacing general GDP, while net profits are highly varied year over year, ranging from net losses to returns of 4.0%9. The most significant drivers to profitability are cost side elements and specifically jet fuel costs. As industry has become both more efficient in general costs and more effective at hedging variable fuel costs, the past three years have demonstrated stable, favorable and growing profit returns2,6,8. To be sure, the industry is far from secure with 41 bankruptcies filed by US based airlines alone in the past decade12.
Industry Segmentation
In addition to aforementioned segmentation by cargo and passenger mileage, the industry can be segmented geographically and by service area. Geographically, the global market share is divided (via RPK) as Asia-Pacific 31.1%, North America 25.3%, Europe 25.1%, Middle East 9.1%, Latin America 6.8%, Africa 2.6%2. The industry is also defined by international versus domestic travel. Domestic travel is often further subdivided into regional versus national or major airlines. Within the 5.3% growth in RPK, international travel represented an RPK growth rate of 6.1% while domestic travel represented 4.0% growth2. Within each region, the Middle East has represented the largest 20 year growth of 7.3% while North America represented the slowest at 3.3%. Within each traffic flow, the US domestic travel market remains...

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Mergers and Acquisitions: American Airlines Merges With Rival US Airways
Strayer University
Contemporary Business
(BUS508)
May 18, 2014
American Airlines Merges With Rival US Airways
Successful corporations in business are always seeking different ways to improve their position in their respective areas of operation. Mergers and acquisitions have been proven to be a way to do just that. A merger is simply defined as two companies joining to make a new company, whereas an acquisition occurs when one company outright purchases another company. Mergers and Acquisitions are considered as the important growth strategy for companies to satisfy the increasing demands of various stakeholders (Krishnamurti and Vishwanath, 2010).
Why Merge?
AMR Corporation, the parent company of American Airlines, announced plans to merge with US Airways Group in February, 2013. This came after the corporation had previously filed for Chapter 11 bankruptcy protection in November 2011. (Isidore, Chris) The resulting merger created the largest airliner in the world. The companies officially formed the new American Airlines Group Inc. on December 9, 2013. (Air Transport World, Jan 2014) Doug Parker, previously the CEO of US Airways, and now CEO of the new American, stated: “We are taking the best of both US Airways and American Airlines to create a formidable competitor, better positioned to deliver for...

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American Airlines and US Airways Merger: Is it Good for Consumers?
Is the new merger between American and US Airways a good thing for consumers or will it lead to higher ticket prices and less chance for people to travel? The latest merger between US Airways and American Airlines now gives people basically just four companies to choose from for their airline travel. Is this fair or is it creating a monopoly?
The $11 billion dollar deal still has to be approved by American Airlines’ bankruptcy court judge and U.S. antitrust regulators. If approved, US Airways and American Airlines will merge and will be headquartered in Fort Worth, Texas. US Airways CEO, Doug Parker, will run the new company that will have nine hubs, 1500 planes, 100 million frequent fliers and $40 billion in annual revenue.
This is the second time Parker has attempted to merge his airline with another. His first attempt in 2006 between his company, US Airways, and Delta Airlines failed because he didn’t have the labor unions and creditors onboard so “this time around “Parker won his merger in large part by giving something to everyone” (CharlotteObserver.com).
“To the American Airlines’ unions, he offered the chance to avoid massive layoffs and pay cuts. To his own unions, he offered raises and unified contracts after years without them. To American Airlines’ creditors, he offered a plan that gave them full...